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The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize...
The current ratio or working capital ratio is a ratio of current assets to current liabilities within a business. In other words, it is defined as the total current assets divided by the total current liabilities. The current ratio is one of the oldest ratios used in liquidity analysis.
The current ratio indicates a company's ability to meet its short-term obligations. The formula is current assets divided by current liabilities to equal the current ratio.
The quick and current ratios are liquidity ratios that help investors and analysts gauge a company’s ability to meet its short-term obligations. The quick ratio divides cash and cash...
Current Ratio Definition. The current ratio is a liquidity ratio that is used to calculate a company's ability to meet its short-term debt and obligations, or those due in a single year, using assets available on its balance sheet. It is also known as working capital ratio.
The current ratio is liquidity and efficiency ratio that calculates a firm's ability to pay off its short-term liabilities with its current assets. The current ratio is an important measure of liquidity because short-term liabilities are due within the next year.
The current ratio, also known as the working capital ratio, measures the capability of a business to meet its short-term obligations that are due within a year. The ratio considers the weight of total current assets versus total current liabilities.